Tired of living paycheck to paycheck? If you need an influx of cash to splurge this month or to cover an unexpected expense, applying for a loan may be on your mind. Instead of searching for the best way to “pawn my car title”, you can save yourself the headache of visiting a pawn shop and get a title loan!
When searching for the right loan, it is important to consider all your options. Take a look at some of the differences between title pawns and title loans before making a big financial decision.
What is a Title Pawn and How Can I Pawn My Car Title?
Title pawns and title loans both rely on a vehicle’s title during the approval process. While both loans are based upon your vehicle and its value, they do have key differences that will change your experience as a borrower.
Title pawns are often like pawning other valuables or items in a pawn shop. If you’re facing a financial emergency and need fast cash, pawning a valuable item can get you the cash you need without much effort on your part. Some pawnshops and online lenders can offer title pawn loans that can allow you to borrow cash by using your vehicle’s title as the collateral for the loan. However, with a title pawn, you usually have to give up the vehicle while you repay the loan. So if you use your car often, a title pawn may not be a great choice.
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The loan amount for a title pawn loan is based upon the used condition and value of the vehicle. As a borrower of a title pawn, you will receive a portion of your vehicle’s used value if it were to be sold on the market. Typically, title pawns are short-term loans. This gives borrowers 30 days or so to repay the loan in full or lose possession of their vehicle. Title pawns can be a quick fix for a tough financial situation, but there are other loan options to consider.
How Does a Title Loan Work?
Like title pawns, a title loan works by allowing a borrower to use their vehicle’s title as collateral for the loan. Title loans are a unique type of alternative loan option let borrowers use their vehicle’s title instead of just their credit history to obtain the cash they need. This allows borrowers with less-than-ideal credit histories and financial backgrounds to get the help they need in a tricky situation.1 If you have a paid-off vehicle in your name, the approval rates can be high and flexible!1
Also, with title loans you get to keep your car to drive like normal while you pay off the loan. There is no need to give up your car as long as you stay on top of your convenient monthly payments.
To get a loan estimate for a car title loan, a borrower will simply need to fill out a short inquiry form that requires this information:
- The Make, Model, and Year of the Car
- The Style of the Vehicle
- The Mileage on the Odometer
With just a few simple pieces of information, a borrower can find out their vehicle’s equity and get a fast loan estimate! With loan options like ChoiceCash Title Loans, a qualified borrower can get their cash in as little as one business day.1
If I Pawn My Car Title, Are there Any Disadvantages?
A title pawn is a fast way to get cash when you are in a tough spot. If you have found yourself searching online for ways to “pawn my car title”, there may be some drawbacks worth considering before you apply for that loan.
Consider these disadvantages when looking for the right loan option:
- Vehicle Accessibility: Some pawn shops and title pawn lenders can allow you to continue driving your vehicle during the repayment process. However, others will not, and your car may have to stay with your lender until the loan is paid in full. This can often be an inconvenience to most borrowers that only have one vehicle as their method of transportation. If you need to get to and from work, you’ll need to have access to your car!
- Length of the Loan: Some title loan options like ChoiceCash Title Loans can offer a longer loan term for qualified borrowers. With a title pawn, many borrowers will only receive 30 days or so to repay their loan. Typically, title pawn lenders only offer short term loans that can be difficult to repay.
- High Interest Rates: Since most title pawns are short term loans, the interest rates are often not ideal. High interest rates can make the repayment process unnecessarily difficult and expensive in the long run.
What are the Advantages of a Car Title Loan?
While a title pawn may have too many disadvantages to consider as an option, a title loan can come in and save the day. Title loans can offer many advantages to borrowers besides hassle-free cash!
Take a look at some of the benefits of being a ChoiceCash Title Loan borrower:
- Payments Start Low, and Can Get Lower2: Wouldn’t you like to be rewarded for being a responsible borrower? With ChoiceCash Title Loans, there is an opportunity to get rewarded for keeping your loan account in good standing.2 The more your pay off your loan on time, the lower your monthly payments and interest could be.2
- More Time to Pay: While auto pawn loans may only offer 30 days or less for a loan term, title loans can be different. ChoiceCash Title Loans can offer qualified borrowers more time to pay when they need it.1
- Keep Your Keys: If you’re like most borrowers, your vehicle is your main source of transportation.While you will use your vehicle’s title as collateral for the loan, you do not need to give up your day to day driving habits! Borrowers that make on-time payments and keep their loan account in good standing can keep driving their car like it is business as usual.
- High Approval Rates: Title loans can offer borrowers high approval rates for an alternative loan option! Since the collateral secures the loan, a borrower’s credit history is not the most important part of the approval process. This can make the entire process flexible and allows title loans to offer high approval rates.
- Fast Cash: Qualified borrowers with ChoiceCash Title Loans can get their funds in as little as one business day!1
If I Don’t Pawn My Car Title, What Documents Will I Need to Apply for a Title Loan?
If you’ve made the choice to stick with a title loan to get the cash you need, there are a few documents you will need to provide to make that happen.
These documents can be used to help verify your information and speed the approval process along! Luckily, these documents are likely just laying around and they can be submitted online for your convenience:
- Proof of Income: While alternative forms of income are accepted, most borrowers use their bank statements or pay stubs to prove their income. Income is a crucial part of the approval process, as your loan amount will be based on what you can afford each month.
- Proof of Address: A utility bill, recent credit card statement, or even a rental agreement can be used to prove your address.
- Recent Photos of the Vehicle: For a title pawn and a title loan, a vehicle inspection is often required. With ChoiceCash Title Loans, however, you can skip an in-person inspection simply by submitting a few photos of your vehicle and your odometer.
- Photo ID: A government or state-issued photo ID is needed to help prove that it is you applying for the loan. Typically, most future borrowers will use their driver’s license or passport, but a military ID or FOID card can also be accepted.
- Car Title: To be eligible as proof of title during the approval process, the car’s title must be in your name.
Where Can I Apply for a Car Title Loan Online?
Instead of searching for places to “pawn my car title” online, you can find better options available to get the cash you need in an emergency!
Get your documents ready and take advantage of a quick approval process with ChoiceCash Title Loans. Get started on your loan today by heading over to the website, or by calling a representative at (855) 914-2945. It can take just minutes to see if your vehicle is qualified for funding!